Curating Best-in-Class Portfolio slide image

Curating Best-in-Class Portfolio

REALTY INCOME Quick-Service Restaurants (6.4% of ABR) RESILIENT BUSINESS MODEL: QSRs are less dependent on "dine-in" traffic as their revenue model is based on an "off-premise" and drive-thru (historically 65%+ of sales) offerings. KFC 9.7% 5.4% ORIGINAL RECIPE 8444 MEAL MADE HARD WAY CHICKEN WAFFLES HOT WINGS ARE BACK NOW HIRING STRONG VALUE PROPOSITION: In a recessionary environment, consumers tend to be more value-centric and QSR operators benefit from a “trade down" effect from casual dining consumers. FUNGIBILITY OF REAL ESTATE: Positive re-leasing results on QSR assets due to convenience of real estate location and modest space footprint. INDUSTRY SAME-STORE SALES TRENDS: STRONG RECOVERY TO ABOVE PRE-PANDEMIC LEVELS Growth Over the Same Month in 2019(1) 27.4% 24.0% 18.5% 14.6% 12.9% 13.2% 13.7% 12.0% 11.7% 10.7% 9.7% 9.4% 22.0% 17.9% Jan-21 Feb-21 Mar-21 Apr-21 May-21 June-21 July-21 Aug-21 Sept-21 Oct-21 Nov-21 Dec-21 22-Jan 22-Feb 22-Mar 22-Apr 57 (1) Source: Miller Pulse.
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